The deposit guarantee scheme

The deposit guarantee scheme is an initiative set up by us which is designed to help you to get rented accommodation in the private rented sector.

To qualify for the scheme:

• Tenants need to find their own property which must be within the Borough of Brent.
• Tenants need to explain to the Landlord or agent that the DGS is a written guarantee from Brent Council, NOT a cash deposit.
• The tenant will need to prove a local connection with Brent and to have lived in the Borough for at least the last six months.
• The DGS is only offered to people, who receive a low income, such as, welfare benefits/low wages, which entitles them to claim full housing benefit 
• The DGS will be for the equivalent of 4 weeks rent, capped at £1000.00
  

Under the guarantee scheme we will agree to guarantee a deposit for these people to encourage landlords to make accommodation available to such groups. At the end of the tenancy the landlord or agent may be able to make an application under the scheme to settle any legitimate claim for damages. As part of the guarantee arrangement landlords and agents will be required to carry out period inspections of the property to check on its condition and will be required to give tenants reasonable notice when these inspections are due.

How does the scheme operate?
Under the scheme landlords and tenants are free to negotiate their own letting agreements. The property must be in a good state of repair and decoration, have adequate amenities and it must meet all applicable fire, health and safety requirements. Both parties will then sign a tenancy agreement and a guarantee agreement along with an agreed inventory of the contents and condition of the accommodation. This inventory will be referred to in the event of any claim being made by the landlord.
We will act as the final arbiter in deciding if the claim falls within the scheme and whether any money should be paid to the landlord. Brent do not act as a managing agents nor as rent guarantors. Once the landlord has carried out his/her own check on the tenant and an agreement in principle has been reached, both parties can then approach us and apply to be considered for assistance under the scheme. Once agreed, the Landlord/Agent must supply the Council with the relevant safety certificates etc. plus an inventory of what is in the property and it's condition. At this point we will prepare all the Tenancy Agreements and paperwork and arrange the signup.

The tenant must agree to update the council's housing benefit department regarding any change in their personal or financial circumstances which may affect their benefit claim.

At the outset of the tenancy the landlord, the prospective tenant and one of our officers will meet at the property to inspect it's state and condition.

What the deposit guarantee will not cover:

Certain items will be excluded from the claim procedure and a landlord will not be able to claim under the scheme for the following:

• any shortfall between the contractual rent and the housing benefit entitlement of the tenant. The tenant will be responsible for paying this shortfall and no claim can be made under the guarantee
• claims for compensation submitted by landlords who have themselves breached one or more of the terms of the actual deposit guarantee agreement
• damage resulting from normal wear and tear to any of the furniture, fixtures and fittings
• claims for compensation resulting from false or misrepresented information submitted by the landlord.
  

 
Important
No claim will be considered where the landlord / landlord's agent has failed to carry out the required regular property inspections during the period of the tenancy. The tenant will also be responsible for notifying the landlord of any change in their income or their entitlement to welfare benefits

 
Any landlords who have been convicted of the criminal offences of unlawful eviction or harassment will automatically be excluded from consideration under the scheme.

What types of tenancies are eligible under the scheme?

In order to be eligible to apply for assistance under the scheme the landlord must create one of the following types of tenancy:

• an assured shorthold tenancy
• a written periodic excluded tenancy (this occurs where the landlord and tenant live in the same property and share essential living accommodation) where the landlord agrees that the tenant is entitled to at least one months written notice
• a written non-excluded tenancy (this occurs where the landlord is resident in the same building as the tenant but does not share any essential living accommodation with the tenant)

How long will the deposit guarantee be valid for?
The guarantee will cover landlords until the end of the term of the tenancy. Cover will lapse if a tenancy has been formally surrendered and the surrender has been accepted by the landlord. In some circumstances it may also lapse if the tenant obtains employment and has an income sufficient to cover the deposit.

Where to obtain further information on the scheme?
Any landlords, letting agents or tenants interested in obtaining further information on the scheme should contact us on 020 8937 2777.